In a recent ruling, a federal judge in Texas has declared that the Minority Business Development Agency (MBDA) of the US Commerce Department must offer assistance to all individuals, irrespective of their race. The decision came in response to a lawsuit filed by several White business owners who argued that the agency's policies were unconstitutional.

US District Judge Mark Pittman, an appointee of former President Donald Trump, determined that the agency had violated the equal protection clause of the Constitution's 14th Amendment. Pittman noted that the MBDA relied on a statutory presumption that certain minority groups are "socially or economically disadvantaged" and therefore entitled to services. Some of the groups included in the list were African Americans, Asian Americans, Latino Americans, and Native Americans.

As a result, Judge Pittman permanently prohibited the agency from considering an applicant's race or ethnicity when determining their eligibility for assistance from the agency's business centers. These centers aid businesses in securing funding and competing for contracts.

In his ruling, Judge Pittman highlighted that the plaintiffs, who were White business owners, faced the same obstacle when seeking MBDA programming. Since they were not included in the agency's list, the MBDA assumed they were not disadvantaged. Pittman emphasized that the government must not flagrantly violate constitutional rights when it comes to providing services.

The MBDA, established in 1969 as a division of the US Department of Commerce, is one of the federal agencies exclusively focused on the development and advocacy of minority-owned businesses. The agency has been enshrined into federal law as of 2021. However, conservatives have increasingly turned to federal courts in Texas in recent years to challenge various federal programs and actions, given the conservative tilt of the Fort Worth division of the Northern District of Texas.

This ruling comes in light of the Supreme Court's landmark decision last year, which stated that colleges and universities could no longer consider race as a specific basis for granting admissions. Judge Pittman cited this decision, asserting that it should not be limited to the context of college admissions.

The plaintiffs in the case were three White business owners who were denied MBDA services. They filed their lawsuit in March 2023, and Judge Pittman previously issued a temporary order, allowing them access to the services while the case was ongoing. However, the recent ruling applies nationwide, impacting the MBDA's operations across the country.

The Justice Department attorneys representing the MBDA defended the agency's position, stating that any member of a non-presumed socially or economically disadvantaged group could petition for a presumption of disadvantage. They emphasized that there was a pathway for individuals not included in the MBDA's presumptions to access the agency's services by demonstrating individual social or economic disadvantage.

This ruling is likely to have significant implications for the MBDA and its efforts to support minority-owned businesses. It also adds to the ongoing debate surrounding equal protection under the law and the role of race-based policies and programs in the United States.